Europe’s STOXX up 1% at start of data-packed week

By Shashwat Chauhan

(Reuters) -European shares advanced on Monday, with most sectors gaining, ahead of a week packed with global economic data including inflation readings in Germany and the United States.

The pan-European STOXX 600 added 1%, with industrials among the top gainers, up 1.4%.

Later this week, inflation readings across Europe, the United States and a preliminary reading of euro zone third-quarter GDP would remain in focus.

Minutes from the European Central Bank’s October policy meeting, in which it cut interest rates by 25-basis-points, will be released on Thursday.

The European benchmark logged its third straight weekly loss on Friday as investors assessed the likelihood of tariffs after Donald Trump recaptured the U.S. presidency.

“The outlook in Europe has been weakened by the threat from the US to its exports. And the eurozone’s capacity to react is being undermined by heavyweights Germany and France, both of which are faced with a fragmented political environment which will limit decision-taking,” analyst at Edmond de Rothschild Group wrote in a morning note.

Underwhelming Chinese measures to revive its ailing economy last week also added to the losses.

The stimulus package disappointed market expectations as it lacked direct fiscal stimulus and targeted measures to improve the housing market,” analysts at Deutsche Bank wrote in a morning note.

Meanwhile, Wall Street stood at record highs, with the S&P 500 touching 6,000 points for the first time last week. Trump’s policies of lower corporate taxes and easing regulation could be a boost to U.S. domestic markets. [.N]

Defence companies such as Sweden’s SAAB, Italy’s Leonardo and UK’s Rolls-Royce rose between 2.4% and 4%.

MTU Aero Engines was up 2.1% after Goldman Sachs upgraded its rating on the German engine manufacturer to “buy.

Chemicals gained 1.3%, boosted by a 4.4% jump in UK’s Croda after the group posted higher third-quarter sales.

Insurance rose 1.4%, with Germany’s Hannover Rueck advancing 3.9% after the world’s third-largest re-insurer hiked its 2024 profit target, citing favourable business development and a positive tax effect.

Swiss reinsurance company Swiss Re added 4.2% after UBS upgraded its rating on the stock to “buy” from “sell”.

Among key stocks, German automotive and industrial supplier Continental advanced 5.8% after posting a third-quarter core profit above expectations.

Aquis Exchange more than doubled in value after Swiss stock exchange operator SIX Group said it has reached an agreement to acquire the London-based company in a cash offer.

Delivery Hero added 2% after the Berlin-based food delivery company is set to list Talabat, its Middle East business on the Dubai Stock Exchange in mid-December.

(Reporting by Shashwat Chauhan in Bengaluru; Editing by Mrigank Dhaniwala and Shinjini Ganguli)